HEALTH INSURANCE SIMPLIFIED-A short tutorial

HEALTH INSURANCE SIMPLIFIED-A short tutorial There are five basic types of health insurance. There are also a few variations of the basics, however, if you understand the five, the variations will be easily understood. First, let’s start with the names of the five types. HMO-Health Maintenance Organization Open Access HMO- Health Maintenance Organization with no referral requirement to see a specialist POS-Point of Service Open Access POS – Point of Service with no referral requirement to see a specialist PPO-Preferred Provider Organization Indemnity-A health plan with no preferred physician/hospital network HSA-Health Savings Account All plans have certain things in common. It would be helpful to understand what they are so you can see how they apply to each type of insurance. Deductible-This is the portion of any health charges that you pay before the insurance company pays anything (many plans waive the deductible for physician office visits, instead using an office visit co-pay). ALL plans have a deductible. It may be vary form $0 to $10,000, but it’s always included in the plan benefits. Coinsurance- After the deductible is met, you enter into a period of coinsurance. It’s just what the name says. Two entities are paying the health costs during the coinsurance period. When you see the term 80/60 it means that if you stay in network, you pay 20% and the insurance company pays 80% of the charges. Out of network, you pay 40% ...